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Well Annerk, this whole thing has gotten off-topic pretty well.
I'm just going to say that we'll have to agree to disagree on the topic of credit scores determining a persons value as an employee, and human being.
I think that with the fallout regarding our banking system, some of the things that are going to come to light regarding their inner workings will shock most Americans. Much like when we first began to learn about the dealings regarding the tobacco industry when they lied to consumers, denied the danger of smoking, tweaked the chemical composition of their product.
As more and more people lose their jobs with financial institutions they'll begin to speak out. We'll hear about things they've done like "helping consumers develop a taste for credit", anticipation of crisis, legal snares, and other things. It's no coincidence that the bankruptcy laws changed just before all of this took place (for those who doubt me I won't bother arguing because you won't be swayed... yet).
I just wish, as a whole, we went back to using financial institutions to save our money properly. That's truly my big sticking point out of all this. We as Americans have developed a taste for credit and ultimately... debt.
I wasn't pulling the story out of thin air about a separate credit standard for the super rich. They don't buy things with 10-30 year mortgages, or hastle with credit apps if they're in the club.
If you have enough money you can get one.
There's a credit check... but it ain't FICO. And, there are other purchasing devices more elusive than this for the super rich. The truly wealthy don't even deal with FICO scores, and there are more of them than you think.
A site to see just how may people earn 10,20,30 million dollars per year that 90% of the population don't even know exist... http://www.theyrule.net/
It's a graphical chart to see who sits on what boards of what corporations and what other companies they run. Many earn 10s of millions from several different corporations. They make so much money that the FICO score is meaningless to them... yet people want it to determine if a person gets hired for a job at the local Pizza Hut working the register. Sad.
Last edited by DustyButt; 07-12-2009 at 10:16 PM..
I wasn't pulling the story out of thin air about a separate credit standard for the super rich. They don't buy things with 10-30 year mortgages, or hastle with credit apps if they're in the club.
If you have enough money you can get one.
There's a credit check... but it ain't FICO. And, there are other purchasing devices more elusive than this for the super rich. The truly wealthy don't even deal with FICO scores, and there are more of them than you think.
A site to see just how may people earn 10,20,30 million dollars per year that 90% of the population don't even know exist... THEY RULE
It's a graphical chart to see who sits on what boards of what corporations and what other companies they run. Many earn 10s of millions from several different corporations. They make so much money that the FICO score is meaningless to them... yet people want it to determine if a person gets hired for a job at the local Pizza Hut working the register. Sad.
I know two pwoplw who carry a Centurion, and I know a dozen or so who make over $10M. Big whoop! If they want to buy a house, they still need to take a mortgage. And it's not a wink and a nod process. Is it easier for them to obtain credit? In general terms, yes. But many people with far less are also still able to walk into their bank and walk out with a personal loan in cash up to the lendinging capacity of the branch manager without any documentation. If you are a good customer and have an established banking relationship, getting money is easy.
What does any of that have to do with Mary Jones who is up to her eyeballs in debt because she likes to shop, and figures her boss makes plenty of money, so he'll never miss a few hundred here and a few hundred there. And that happens more often then you think. It might have been prevented if a credit report was pulled that showed Mary's precarious financial situation and she wasn't given check signing authority as a result.
I'm just going to say that we'll have to agree to disagree on the topic of credit scores determining a persons value as an employee, and human being.
Coming in late to the thread, but let me give a slightly different viewpoint, albeit one similar to annerk's.
Credit scores are not used to determine one's value as a human being, or job ability. They are PART of a number of items that combined offer the manager decision making tools.
You do not need rock solid credit to get most jobs. Average, or somewhat spotty credit will usually suffice. But if you are collection from a variety of lenders, that is a bad sign. All of the people that I have seen with bad credit, in collection, have owed money on retail charge accounts, standard credit cards, and utility bills. I have never seen anybody owe significant amounts of money on medical bills.
I am not saying that it does not happen, only that it is rare, and deserves to be though of differently from those people who simply run up a lot of retail bills without being able to pay.
With that being said, iffy credit with a good explanation will still allow you to be hired most times. Did you get laid off unexpectedly and run up bills? Did you get divorced, and have a bad spot? These real world explanations will allow a hiring manager to overlook bad credit and hire you. But don't just make something up, because this can be checked on.
Credit CAN be used to determine somebody's trustworthiness. If a person is under financial stress, and needs the money, they are more likely to make poor decisions (steal) a company's assets. If a person has poor credit simply because they are a flake and cannot be bothered to pay their bills on a regular basis, they are more likely to be a flake at work and not bother with their daily responsibilities.
I agree with the other posters though. Credit checks are not usually run until the manager is ready to offer a job. At that point, you should be able to talk to the manager and give him/her any reasons for shaky credit.
I have heard that credit checks are also used for admission to MBA programs.
All of the people that I have seen with bad credit, in collection, have owed money on retail charge accounts, standard credit cards, and utility bills. I have never seen anybody owe significant amounts of money on medical bills.
I am not saying that it does not happen, only that it is rare
Then you don't know many people. Medical debt is the #1 cause of bankruptcy in America.
Quote:
Credit CAN be used to determine somebody's trustworthiness. If a person is under financial stress, and needs the money, they are more likely to make poor decisions (steal) a company's assets. If a person has poor credit simply because they are a flake and cannot be bothered to pay their bills on a regular basis, they are more likely to be a flake at work and not bother with their daily responsibilities.
Every major study on this matter disagrees with you.
Let's say that someone applied to work for you. You run a small auto repair business in an iffy neighborhood, the person would be your cashier, inventory clerk, and bookkeeper. Many of your customers pay cash for their repairs, sometimes thousands of dollars at a time.
A woman applies to work for you, and she's got rotten credit. Doesn't seem to have paid anything on time, ever. When you run her credit and see the disaster, you ask her about it--has she had any life events that would cause her financial problems, and she says, "no, I just don't keep track of my bills, and last year I got really behind because I had to pay for my vacation to Hawaii."
Can you honestly tell me that this is a person you want handling your cash and your books?
The credit and the scummy employers who are taking advantage of the poor economy and paying ppl crap wages !!! I hope when and if the economy gets better that alot of these companies that paid crap wages and kept the unemployment rate high go out of business !!! One can only hope that these places get what they deserve and that is to go out of business !!!!
Not all employers are paying crappy wages, and not all employees are worth what they think they are. Food for thought.
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